Nabors Industries Ltd
NYSE:NBR
Nabors Industries Ltd
Nabors Industries Ltd. engages in the provision of platform work over and drilling rigs. The firm is a provider of offshore platform drilling rigs in the United States and multiple international markets. The firm conducts its Drilling & Rig Services business through four segments: U.S. Drilling, Canada Drilling, International Drilling and Rig Services. The firm provides wellbore placement services, drilling software and performance tools, drilling equipment and various technologies throughout the oil and gas markets. The firm's Drilling & Rig Services business comprises land-based and offshore drilling rig operations and other rig services, consisting of equipment manufacturing, rig instrumentation and optimization software. The firm is a provider of directional drilling and measurement while drilling (MWD) systems and services. The firm also provides drilling technology and equipment, and well-site services.
Nabors Industries Ltd. engages in the provision of platform work over and drilling rigs. The firm is a provider of offshore platform drilling rigs in the United States and multiple international markets. The firm conducts its Drilling & Rig Services business through four segments: U.S. Drilling, Canada Drilling, International Drilling and Rig Services. The firm provides wellbore placement services, drilling software and performance tools, drilling equipment and various technologies throughout the oil and gas markets. The firm's Drilling & Rig Services business comprises land-based and offshore drilling rig operations and other rig services, consisting of equipment manufacturing, rig instrumentation and optimization software. The firm is a provider of directional drilling and measurement while drilling (MWD) systems and services. The firm also provides drilling technology and equipment, and well-site services.
Debt Reduction: Nabors reduced net debt by $554 million compared to the end of 2024, leading to lower interest expenses and improved capital structure.
EBITDA Beat: Q4 adjusted EBITDA was $222 million, exceeding expectations set on the prior call, with strength in U.S. Drilling and Drilling Solutions.
Guidance: 2026 EBITDA is expected to match 2025 levels, with 6%–8% normalized growth excluding the Quell divestiture. U.S. Lower 48 rig count guidance increased to 64–65 rigs for Q1.
International Growth: Strong activity in Saudi Arabia and Latin America is driving international expansion, with five new SANAD rigs set to come online in 2026.
Free Cash Flow: Full-year 2025 adjusted free cash flow reached $117 million, significantly above guidance, aided by strong collections in Mexico and lower capital expenditures.
Parker Integration: The Parker Wellbore acquisition is delivering ahead of synergy targets, with at least $70 million in EBITDA expected from retained assets in 2026.
Capital Allocation: Nabors plans to further reduce gross debt by at least $100 million in 2026, supported by ongoing free cash flow generation.
